EXTRA CREDITS FOR Q2_LQ1

Simon invested an amount of P2,000 at 7% simple interest, which is due at the end of 240 days.
_____ 1. P2,000 is the
a. present value b. final value c. simple interest d. amount
_____ 2. What is the maturity value?
a. P2,092.05 b. P2,092.06 c. P2,093.33 d. P2,093.34
_____ 3. If money was invested last January 1, 2007, when will the money mature?
a. August 28 b. August 29 c. August 30 d. August 31

$5,000 is invested at 5% interest, compounded semi-annually for 9 years and 8 months.

_____ 4. What is the term of the investment?
a. 9 2/3 years b. 9 4/5 years c. 9.8 years d. 9.67 years
_____ 5. The compound amount is
a. $8,112.56 b. $8,083.10 c. $8,059.31 d. $8,013.09
_____ 6. The compound interest is
a. $3,112.56 b. $3,083.10 c. $3,059.31 d. $3,013.09

7. A man will deposit with a trust company a sum just sufficient to provide his family with an annuity of P7,500 per
month for 15 years. How much should he deposit if the fund accumulates at 4 ½ %, compounded monthly? __________

8. At the end of each quarter during a 10-year period, Sam invested P17,698. How much will the future value be 10 years
after the last investment is made? Assume money is worth 15% compounded quarterly?

9. On January 5, 2006, Jodi borrowed P115,000. She agreed to pay it together with P16,056 interest. If the periodic
interest rate is 4 ¾ %, what amount must she repay? Assume quarterly compounding.

10. Referring to item 9, on what date should Jodi repay the amount she borrowed? Use the Banker’s Rule.

11. Referring to item 9, how many compounding periods are there for the full term of the loan?